Back to top

Image: Bigstock

PlayAGS (AGS) Boosts Offerings in Two New Jurisdictions

Read MoreHide Full Article

PlayAGS, Inc. (AGS - Free Report) recently announced the launch of its electronic gaming machines (EGMs) and table games in Colorado and Missouri. The news follows on the heels of jurisdictional approvals and the successful Spectra UR43 launch featuring Triple Coin Treasures games.

Obtaining licenses in the two jurisdictions is integral to AGS' overall expansion strategy. The company is optimistic and anticipates the initiative to contribute to its goal of being North America's premier gaming provider.

In Colorado, the company stated the availability of the games in Century Casino & Hotel Central City, Golden Nugget Cripple Creek and Monarch Casino Resort Spa Black Hawk.

In Missouri, the coverage included Horseshoe St. Louis, River City Casino Hotel, Hollywood Casino St. Louis, Argosy Casino Hotel & Spa, Harrah's Kansas City, Bally's Kansas City Casino and Ameristar Casino Hotel Kansas City.

Emphasis on EGM Operations

PlayAGS continues to focus on EGM gaming operations to drive growth. During the second-quarter earnings call, the company reported strength in EGM revenue per day (RPD) metrics (up 7.9% year over year). This can be attributed to the growing Spectra and premium mix, installed base expansion and capital optimization efforts.

During the quarter, the company reported global EGM equipment sales of 1,259 units, up 35% year-over-year and 7% ahead of 2019. The upside was primarily backed by the strong performance of the Spectra cabinet, continued penetration of the Historical Horse Racing market and consistent North American replacement unit demand.

The company anticipates the momentum to continue in the third quarter as well. Emphasis on installed base growth (backed by unit expansion and Spectra deployment), diverse core content portfolio and consistent market penetration momentum will likely aid the company in the upcoming periods.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of PlayAGS have gained 33.3% year to date compared with the industry’s 11.1% growth.

Zacks Rank & Key Picks

PlayAGS currently has a Zacks Rank #3 (Hold).

Some other top-ranked stocks in the Zacks Consumer Discretionary sector include

Live Nation Entertainment, Inc. (LYV - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have increased 7.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 21% and 57.8%, respectively, from the year-ago period’s levels.

Hilton Worldwide Holdings Inc. (HLT - Free Report) currently carries a Zacks Rank #2. HLT has a trailing four-quarter earnings surprise of 12.5% on average. Shares of the company have gained 22.5% in the past year.

The Zacks Consensus Estimate for HLT’s 2023 sales and EPS indicates a rise of 14.8% and 23.7%, respectively, from the year-ago period’s levels.

OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased 25.5% in the past year.  

The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 44.5% and 117.9%, respectively, from the year-ago period’s levels.

Published in